Income Tax Return Delays: High Court Rules on Tax Authority's Decision-Making Boundaries

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the Income Tax Act, 1961. This provision is central to the dispute, as it concerns the condonation of delay in filing tax returns and the extent of the authority vested in the tax officials regarding such matters. The principal issue is whether the tax authorities, specifically the Principal Commissioner of Income Tax, can consider the merits of the claim (income/loss) while deciding on an applica .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nce regarding the petitioner's claims, rather than solely on the grounds for the delay in filing the return. Legal Analysis * Scope of Section 119(2)(b): This section empowers the Board to authorize any income-tax authority to admit applications or claims for exemptions, deductions, refunds, or other reliefs after the expiry of the specified period, but does not explicitly grant the power .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... al Commissioner, deeming it unsustainable due to its focus on the merits of the income/loss claim. * Remitting the Matter for Fresh Consideration: The case was sent back to the Principal Commissioner of Income Tax for a fresh decision, with instructions to focus only on the merits of the application for condonation of delay, without delving into the merits of the income/loss claim. Full Text: .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X